In the pumpkin-growing firm example in the text, land is a fixed factor because
A)it is a physical factor of production.
B)the firm produces a single product.
C)it cannot be varied during the season.
D)it has no close substitutes.
E)the firm is a price-taker.

Question

Quizplus · Accepted Answer

Land is a fixed factor in the pumpkin-growing firm example because it cannot be varied during the season. This means that the amount of land available for pumpkin growing is a fixed input that cannot be increased or decreased in the short run, regardless of changes in the market or demand for pumpkins.

In the Pumpkin-Growing Firm Example in the Text, Land Is